Catering for Success: Reaping the Benefits of Being a Self-Starter

Starting a catering business is an exciting venture for many aspiring entrepreneurs. This $7 billion industry offers the opportunity to turn your passion for food and entertaining into a profitable catering startup. From selecting a niche and sourcing essential restaurant furniture to writing a comprehensive catering business plan and securing insurance and licenses, these are just a few of the critical steps required to transform your dream of running a catering business into reality. With dedication and careful planning, your startup could evolve into a thriving and successful corporation.

Being Your Own Employer

If you are already involved in the food industry—whether as a restaurant employee, partner, manager, or in another capacity—you may have envisioned what it would be like to run your own business. If you have a passion for cooking and preparing dishes, starting your own catering company could be a fulfilling and rewarding venture. With dedication and a commitment to ensuring smooth operations, this effort can prove highly profitable. Not surprisingly, social catering has experienced significant growth in the food service industry, with expectations that this trend will continue.


Being your own boss comes with numerous perks. One major advantage of starting a catering company is the flexibility it offers—you can maintain your current job while managing your catering business on the side. According to the NACE (National Association of Catering Executives), catering businesses often have a higher success rate compared to restaurants, primarily due to lower overhead costs and the ability to employ staff only for scheduled events. While passion and talent are crucial for success, completing culinary courses and management classes can provide valuable skills and experience in food preparation and restaurant management. Additionally, understanding local government regulations can help you effectively market your business and navigate industry requirements.

Finding a Location, Vendors, and Employees

Most novice caterers conduct the majority of their business transactions from their own kitchens, while some opt to rent kitchen-equipped venues for each event. As their businesses grow and reputations strengthen, many catering companies transition to maintaining permanent locations. High-end and renowned companies have established themselves as leaders in the catering industry. For those just starting out, working from home kitchens or renting facilities to cater specific events is a common practice until they can establish a fully independent catering business.


Building strong relationships with suppliers, event planners, and food service consultants is a crucial next step when running a catering business. These connections can provide valuable support for your catering events. As your business expands, hiring employees or independent contractors to serve your clients effectively becomes essential. When recruiting, prioritize traits such as personability, reliability, and organizational skills, as these are vital for success. Joining organizations like the National Association of Catering Executives can further support your business by offering a network of industry contacts and resources to aid your endeavors.

Drawing a Business Plan

Creativity is essential, but it’s important to remember that you’re running a catering business. While the artistic side of catering is one of its most enjoyable and vital aspects, tracking revenue and expenses is crucial to measuring the efficiency of your company’s production process. A well-crafted catering business plan can guide you through each stage of business development. Starting your own catering company involves juggling multiple responsibilities, and a business plan is designed to keep you focused and organized. It helps you envision your business, calculate start-up costs, register for a business license, and develop marketing strategies. Additionally, a business plan is often required when seeking financial assistance from banks or other lending institutions.


Your catering business plan should include a detailed description of your services and the types of food you plan to prepare. Catering styles can vary widely—some caterers serve guests directly at their tables, while others offer buffet-style meals where customers select from a variety of food and drink options. This detail should be specified in your business plan. Furthermore, your plan should address the space requirements for operating your business. Depending on your budget and needs, you may choose to lease or share a commercial kitchen space with another caterer. Your plan should also include a comprehensive list of the equipment you’ll need, from cooking utensils to appliances. Additional costs, such as insurance requirements, should also be accounted for in your business plan.

Obtaining Business Insurances and Licenses

Like any commercial business, obtaining proper licensing and insurance is a non-negotiable requirement for operating your catering company. Unfortunately, the significance of these measures is often underestimated or overlooked. Running a catering business without a valid license or insurance can result in severe consequences. A business license and commercial liability insurance are crucial to safeguarding your business, customers, vendors, and anyone else potentially impacted by your services. Additionally, if you hire employees, you are legally required to establish a worker’s compensation insurance plan for each of them.


Caterers can choose to work independently or contract through event facilities. While possessing a broad skill set and a strong understanding of business operations is essential, none of it can be legally put into action without the appropriate licenses. Before launching your business, you must complete the process of obtaining various licenses and permits. For instance, a Food Establishment License is required to operate any food service establishment, which is generally issued by the Department of Health in most states. In certain cases, such as bakeries in Minnesota, licensing falls under the jurisdiction of the Department of Agriculture. Although specific requirements differ by state, all include mandatory facility inspections to ensure compliance with state regulations. Furthermore, it is essential to provide proper training for all staff members and ensure they obtain Food Certification.

Fashioning a Catering Niche

If your goal is to stand out from competitors in the catering industry, defining a niche can help you achieve it. Identifying your niche allows you to tailor services and menus that build your reputation and differentiate your brand. Whether you are aiming to establish your name, refresh your existing business, or reinvent your brand, there are numerous ways to segment your catering services. By targeting a niche that competitors have overlooked or one where you excel, you can position yourself as a leader in that space. For example, if you’re starting a catering business and don’t yet have the capacity or equipment for sit-down dinners at large weddings, you could focus on smaller events like wedding showers or engagement parties.


Conduct thorough research to understand what your competitors offer and identify gaps in the market. Consider partnering with restaurants that provide catering services to expand your reach and build connections. Design your menu around your specialties and the specific demands of your chosen niche. Ensure that your menu items are both competitively priced and profitable. Pricing can be challenging, as it depends on factors such as your location, the time required to prepare each dish, the cost of ingredients, and your desired profit margins.

Purchasing Equipment and Furniture

If your budget allows, consider investing in quality restaurant furniture from a reputable commercial-grade furniture distributor. At a minimum, options like a wood folding banquet table and wood folding chairs provide an affordable solution without compromising on quality, making them an excellent choice for those on a tight budget.


Folding tables and chairs are an ideal furniture solution for banquets, dining halls, conferences, cafeterias, and catered events due to their compact size and folding mechanisms. Easy to transport and store, they streamline setup and teardown processes, especially in commercial spaces with limited room. Known for their versatility, many folding tables and chairs are constructed from high-grade, weatherproof materials, making them suitable for outdoor use. One thing is certain: our entire selection of folding restaurant tables features sturdy frames and durable tops, ensuring they can support heavy equipment and large amounts of food with ease.

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